A Deep Dive into ERC-1337: A Thorough Guide to Deploying on Celo


In the current landscape of web3 and its pursuit of decentralization, NFTs have become a focal point for both technical and non-technical enthusiasts. Gaining a comprehensive understanding of the various NFT types and their appropriate use cases presents an innovative approach to implementing these tokens in practical applications.

In this tutorial, we delve into the emergence of a novel contender, namely the Erc-1337 token standard. This tutorial provides an in-depth exploration of the Erc-1337 token standard, encompassing the Idea behind the token. Moreover, it elucidates the techniques for seamless interaction with these tokens within the blockchain ecosystem.


Before diving into creating, deploying, and minting ERC-223 tokens on Celo, it is essential to understand the prerequisites for the process. This includes having a basic understanding of the following:

  • Hardhat: Hardhat serves as a comprehensive development environment tailored for constructing and evaluating smart contract applications on the Ethereum blockchain. Its robust suite encompasses a plethora of powerful and adaptable tools and services, greatly simplifying the process of developing, testing, and deploying smart contracts.

  • Solidity: Operating as an object-oriented programming language, Solidity finds its purpose in the creation of smart contracts. Specifically engineered to target the Ethereum Virtual Machine (EVM), Solidity boasts an extensive array of features, including inheritance, libraries, and the ability to define custom types.

  • OpenZeppelin: Regardes an open-source framework, OpenZeppelin specializes in the development and deployment of secure smart contracts across Ethereum and other blockchain networks. It furnishes an array of tools and libraries, effectively streamlining the creation of secure and dependable smart contracts.

  • Node Package Manager: Additionally, possessing familiarity with the Node Package Manager (npm) is crucial. As a package manager designed for JavaScript, npm facilitates the installation, removal, and management of package dependencies within a project.

What is ERC-1337

The ERC-1337 standard proposal aims to enable recurring subscription models on the blockchain. In the current space, monthly subscriptions for software or content are widespread, and ERC-1337 seeks to extend this functionality to cryptocurrency payments. By leveraging ERC-1337, merchants can securely store a customer’s authorization signature to facilitate pre-approved recurring payments according to a predetermined schedule (such as 12 pre-approved payments for an annual subscription). This standard not only facilitates practical cryptocurrency transactions but also empowers crypto enthusiasts to make regular contributions to blockchain-based projects, thereby fostering industry growth.

Currently Software as a Service (SaaS) reigns supreme. Numerous successful projects and companies have adopted a subscription-based model to sustain their operations and generate revenue. In line with this trend, the EIP or ERC-1337 token standard aims to bring the popular subscription model to the blockchain, although its practical implementation within the Web3 ecosystem is yet to materialize. Presented here is a straightforward guide to understanding the ERC-1337 token standard in accessible language.

Understanding the ERC-1337 Token Standard

As mentioned previously, the proposed ERC-1337 token standard aims to establish a framework of rules and principles that facilitate a subscription-based model for blockchain-based enterprises. In many aspects, this standard can be seen as a Web3 solution to a successful revenue generation approach employed by its predecessors.

This advancement holds immense potential, as it enables creators and developers to establish reliable and continuous revenue streams, all while adhering to the decentralized principles inherent to blockchain technology. Furthermore, customers have the advantage of maintaining complete anonymity through their cryptographic wallets.

However, it is important to note that the current status of the ERC-1337 token standard, as of May 2022, remains in the proposal phase and has not yet received official approval. These details indicate that the standard is still undergoing evaluation and development.

Using the ERC1337 Token Standard: Simplifying Recurring Payments on the Blockchain

The blockchain technology is still in its nascent stages, making the implementation of basic functionalities like a scheduled payment system a complex task. However, the EIP or ERC-1337 token standard aims to streamline this process by emulating traditional methods utilized by conventional companies and service providers. But how does it achieve this?

In theory, decentralized applications built on the ERC-1337 standard will enable users to “sign” their transaction data for recurring payments. Drawing an analogy from real-life scenarios, consider the use of post-dated checks for a rental agreement. For instance, if a landlord requests post-dated checks from a tenant, the tenant would need to pre-fill additional checks, each dated for future encashments or deposits. Similarly, “signing” an ERC-1337-based transaction would resemble post-dating checks. Let’s delve into the specifics.

Imagine discovering a blockchain-based dating app that offers only yearly subscription packages, while you prefer a monthly subscription. Typically, you would need to make individual monthly payments. However, if the dApp is built using ERC-1337, you would simply need to sign your details once and proceed. But how does it work?

By signing your details once, you authorize 12 payments to the selected merchant. The initial payment is processed upon the initial signing, with subsequent payments executed on specific dates.

These pre-scheduled payments are made possible through the inclusion of smart contracts within the ERC-1337 token standard, designed to interact with your Ethereum wallet. Consequently, the payment process is streamlined, offering a user-friendly interface to manage ongoing subscriptions and payments. Additionally, users retain the ability to cancel payments at any time.

  • It is important to note that specifying precise advantages and disadvantages of a token standard without real-life implementation remains challenging. Presumptively, the primary advantage of ERC-1337 is unlocking one of the most profitable business models for blockchain-based projects and organizations. From a consumer perspective, it eliminates the need for regular payment hassles, particularly when managing multiple subscriptions.

Two existing disadvantages that arise when using the ERC-1337, with one associated with the token standard itself and the other as a byproduct of its design.

  • The first drawback pertains to the inherent costs (not solely monetary) of supporting a subscription-based business model. dApp owners and developers must continually deliver value to their customers, ensuring a relatively rapid turnover of content or service improvements, especially when subscription fees constitute the primary source of income. However, this concern leans more toward a business issue rather than being token standard specific.

  • Another significant drawback is the lack of real-life usage for the ERC-1337 token standard. As it is still in the proposal phase, developers and enthusiasts may be hesitant to fully embrace it, as its practical implementation remains unexplored territory.

By considering the ERC1337 token standard, it is possible to simplify recurring payments on the blockchain, opening up new avenues for subscription-based models while addressing associated advantages and disadvantages.

While the ERC-1337 protocol has yet to be approved and implemented, its potential applications have sparked discussions among blockchain enthusiasts and dApp developers. As we explored earlier, the proposed token standard aims to revolutionize recurring payment models on the blockchain, offering advantages such as simplified payment processes and the ability to support subscription-based businesses. Although its current status remains in the proposal phase, there are several intriguing ways in which ERC-1337 may be utilized in the future:

  1. Subscription-Based Services: ERC-1337 could enable seamless and secure recurring payments for various subscription-based services, including streaming platforms, membership sites, and software-as-a-service (SaaS) applications.

  2. Content Creation and Crowdfunding: The token standard may provide a means for creators and artists to receive ongoing support through recurring contributions from their audience, fostering a sustainable ecosystem for content creation and crowdfunding campaigns.

  3. Decentralized Autonomous Organizations (DAOs): ERC-1337 could be leveraged to facilitate automated recurring payments within DAOs, ensuring seamless compensation for contributors, token holders, and project maintenance.

  4. Micropayments and Pay-as-You-Go: The protocol could enable efficient micropayments and pay-as-you-go models, allowing users to pay for services or content on a per-usage basis, unlocking new possibilities for monetization.


While the practical implementation of ERC-1337 remains pending, these potential future applications highlight the exciting possibilities that the token standard could bring to the blockchain ecosystem. As the technology evolves, it will be intriguing to witness how ERC-1337 unfolds and contributes to the growth and innovation within the decentralized space.

Next Step

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About the Author

Oselukwue Kinyichukwu is a Fullstack developer with a passion for learning, building, and teaching. You can follow me on Twitter, check out my profile on LinkedIn, and see what I’m building on Github.


Hey @Celo_Academy I want to work on this.
Announcing This Week’s Top Proposals and Celebrating this Week’s Leading Contributors | 06/08/23 - Academy Blog / Updates - Celo Academy


I look forward to the technicalities in this proposal. Nice one


Hey @kinyichukwu - thanks for being a top contributor! Approved for you to get started!

Note: Could you skip this part “It’s followed by an introduction to the Celo blockchain which highlights its mobile-first approach, inclusive financial infrastructure and proof-of-stake consensus mechanism.” and focus on the ERC-1337 details and step by step guide for deploying. There are many articles covering the basics of Celo for developers to reference we don’t need to reiterate it here.


Amazing, looking forward to this :smiley::+1:t5:


i will review this